Smartworks Coworking Spaces Limited IPO

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Smartworks is India’s leading managed office space and campus platform, founded with a mission to transform traditional commercial real estate into tech-enabled, serviced workspaces. As of March 31, 2025, it is the largest managed campus operator in the country in terms of total leased stock.

Business Model

Smartworks operates by leasing large, bare-shell properties from landlords—especially passive or non-institutional owners—and transforming them into fully-serviced, modern, and branded workspaces. Its offering includes:

a) Long-term leasing (typically 10–15 years)
b) Customised fit-outs
c) Daily-use and aspirational amenities
b) Technology integration and efficient space utilization

Key Offerings

i) Managed Workspaces: Fully serviced and aesthetically designed work environments with rapid delivery (45–60 days)

ii) Value-Added Services (VAS): Cafeterias, gyms, creches, convenience stores, etc., through partners like Chaipoint, Park+, and ClearTax

iii) Fit-out-as-a-Service (FaaS): Custom design and build services based on client requirements

iv) Tech Enablement: Proprietary digital systems for managing operations and facility buildouts

Clientele

Smartworks serves a diverse mix of large Indian corporates and global MNCs, including Google IT Services India Pvt. Ltd., L&T Technology Services Ltd, Groww (Billionbrains Garage Ventures), Persistent Systems Ltd., MakeMyTrip India Pvt. Ltd., Bridgestone India Pvt. Ltd., Philips Global Business Services LLP

Many of these clients have multi-location, long-term contracts with Smartworks.

Market Opportunity

  • India’s Commercial Office Stock: 883 million sq. ft. (as of March 2025), expected to reach 1,072 million sq. ft. by 2027

  • Flexible Workspace Share: Grown from 7–9% pre-2020 to 14–16% in 2024

  • High-Seat Demand: Major deals are increasingly in the 100+ seat category, aligning with Smartworks’ focus on mid-to-large enterprises

Competitive Strengths

i) Market Leadership: Largest lease-signed managed workspace operator in India
ii) Strong Growth Metrics: SBA CAGR (FY23–FY25): 20.80%, Revenue CAGR (FY23–FY25): 38.98%
iii) Execution Capability: Cost-efficient operations, modular fit-outs, and standardised design library
iv) Capital Efficiency: Average payback period for mature centres is 30–32 months vs. industry average of 45–52 months.

Objects of the Smartworks Coworking Spaces Limited IPO:

The Company intends to utilize the net proceeds of the Offer in the following objects: 1. Repayment/ prepayment/ redemption, in full or in part, of certain borrowings availed by the Company (₹114 cr) 2. Capital expenditure for fit-outs in the New Centres and for security deposits of the New Centres (₹225.8 cr) 3. General corporate purposes.

Smartworks Coworking Spaces Limited IPO Details:

Open Date: Jul 10 2025
Close Date: Jul 14 2025
Total Shares: 1,43,13,400
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Building IPO
Issue Size: 582.56 Cr.
Lot Size: 36 Shares
Issue Price: ₹ 387 - 407 Per Equity Share
Listing At: NSE,BSE

Promoters And Management:

1. Atul Gautam is the Chairman and Non-Executive Director of the company. With over 42 years of experience in banking and finance, he previously held senior roles at Punjab National Bank and served as a senior advisor at the Indian Banks’ Association. He holds degrees in science and western history from the University of Lucknow and joined the company in 2024. 2. Neetish Sarda, Founder and Managing Director, leads core business operations, sales, technology, and strategic growth. A B.Sc. graduate from the University of London, he has over 9 years of experience in the flexible workspace industry. He has been recognized with multiple awards, including India’s Impactful CEO 2024 by ET Edge and Hurun India's Top 200 Self-made Entrepreneurs. 3. Harsh Binani, Co-founder and Executive Director, oversees finance, investor relations, HR, and marketing. He is an economics graduate from SRCC and holds an MBA in Finance from Kellogg School of Management. With prior experience at McKinsey & Company, he brings 14 years of expertise in consulting and co-working. He joined the company in 2017.

Financials of Smartworks Coworking Spaces Limited IPO:

Particulars FY 2024-25 FY 2023-2024 FY 2022-2023
Revenue from Operations 1374.05 1039.36 711.39
EBITDA 857.26 659.67 423.99
EBITDA Margins 62.39% 63.47% 59.60%
Adjusted EBITDA 172.23 106.03 1.36
Net Loss -63.1 -49.95 -101.04
Net Loss Margins -4.48% -4.49% -13.58%
ROCE 42.30% 28.12% 11.90%
Debt to Equity Ratio(In Times) 2.9 6.87 8.84
Operating Cash Flows 928.5 743.3 531.83
Note: Adjusted EBITDA is EBITDA adjusted for cash outflow for lease liabilities during the year

Comparison With Peers:

Companies Revenue (in cr) EBITDA Margins PAT Margins D/E Ratio MCap (in cr) P/E
SMARTWORKS COWORKING SPACES LIMITED(FY25) 1374.05 62.39% -4.48% 2.9 4644.81 In loss
Awfis Space Solutions Limited 1208 33.00% 3.57% 3.08 4369 101

Recommendation on Smartworks Coworking Spaces Limited IPO:

Registrar of Smartworks Coworking Spaces Limited IPO:

  1. MUFG Intime India Private Limited

Discussion on Smartworks Coworking Spaces Limited IPO:

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